Private Investigations and Personal Security/credit card fraud remedy for business owner?



An employee of our store was found to have committed fraud over a long period of time.  He would take money and charge it against other customers’ credit card accounts.  We spoke with the district attorney and  feel that we will probably come up with enough evidence to bring charges, although it will be a federal case because there was interstate credit card fraud involved.  Is there any protocol on how to deal with the credit card companies while this is all going on?   Is the merchant responsible for all of the employee’s fraudulent charges?  Is there any remedy or recourse we can take during the investigation?  The credit card companies want their money, and if they succeed in taking it all at once it will put us out of business.  Any advice will be greatly appreciated.

Thank you.

First off your question is a legal one not investigative. I'm in Canada and your in the U.S. I suspect United States as you used the word Attorney.

If you have insurance for employee theft this would resolve some of your issues and your losses.  Call your broker and see if you have coverage that will get you out of this.  

You need to obtain the police report you filed with the police and make a bunch of copies.. Give this to both your insurance company (if you have coverage) and any creditor who may come looking for their money as a result of this fraud.  

Credit card companies and/or merchant credit card companies write off debt all the time when it pertains to fraud. They have insurance as well.  So your going to have to convince them your company has been a victim.  Every creditor will have different procedures and forms to get the debt written off.  I am sorry but you are in for a paper headache.

If you have no recourse to pay and are worried about going out of business contact a Bankruptcy Trustee.  But hire the Trustee to make a "proposal" to these creditors to pay a small portion of the debt each month so you can stay in business.  The proposal may suggest that the debt should be reduced based on what happened.  

As far as the individual who victimized you.  You can of course sue the person for your losses but only if you believe the person has assets and you will actually collect.  Otherwise use your money to stay in business.

Let me know how you make out.


Kevin Bousquet - Corpa  

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Kevin Bousquet


Questions relating to the law and private investigators, trying to collect a judgment, child support, asset investigation, corporate investigation, due diligence, finding missing persons. Closing a safe business deal. Fraud and Fraud Avoidance Issues. Trying to collect from people working for cash. The Corpa Group Inc. is a 17 year old agency. Kevin Bousquet has been in the private investigation business since he was 19. Now in his 40s Kevin runs one of the top agencies in North America.


Civil, Criminal, Domestic, Collection

Law Enf Grad (honours)1986, Law/Legal Admin 1991, Certified Fraud Examiner (CFE), Certified Fraud Investigator (CFI), Currently working on the designation English, French, Japanese. Owner Corpa Investigation since 1991.

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